US Factory Output Rebound in First Quarter Extended Beyond AI

US factory output snapped back in the first quarter after disappointing at the end of 2025, and the advance extended beyond the artificial intelligence build-out.

Federal Reserve data out Thursday showed manufacturing production excluding high-technology industries, such as computers and semiconductors, increased an annualized 2.8%. That’s one of the healthiest paces since 2021, when the economy was shifting back into gear following the pandemic.